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Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking Everything)

Posted January 17th, 2011 in Networking | View Comments Sample-2

The single most important change in human organization in the next ten years will be the changing nature of our relationship with groups and informal associations.

In the beginning of his book “Here Comes Everybody” – one of the foundational documents of the Internet’s impact on society – author Clay Shirky tells the story of a woman who loses her phone in a cab, only to have it picked up by a rather unpleasant teenage girl who refuses to give it back. The long and the short of the story is that when the police don’t help, the phoneless woman turns to the Internet and manages, through a combination of efforts, to track the phone down.

The story has entered the canon of what we call “crowdsourcing,” the process by which individuals or companies draw upon the wisdom and efforts of diverse and often anonymous people to accomplish something. Crowdsourcing has left its mark on the internet and captured the imagination of many, but in so doing has at times distracted from a larger related phenomenon, which is the shift in how we build, maintain, and leverage informal and formal group relationships to undertake projects and achieve goals.

Crowdsourcing as we use the term today tends to refer to situations in which a specific task gets done by deploying the labor and talent of strangers. Often the motivation is financial. Put differently, crowdsourcing allows people to power a project by assembling a temporary group of strangers, often with the incentive of money, to accomplish a goal.

“Group powering” is something slightly different, and refers to finding the resources and support you need using the members of the groups to which you belong. The motivation is generally Karmic (the more you give, the more you get). Put differently, group powering allows you to power a project by tapping into the goodwill of a group of people with whom you share an ongoing context.

Why this “group powering” is so powerful is not its novelty; people have been turning to their groups for resources since the beginning of human organization. What’s important is that the connective capacity of the internet is helping make informal associations, clubs, and networking groups more powerful than ever before, which in turn is giving people entirely new ways to organize their careers and professional activity.

Right now, if you’re an average high achieving millennial, an essential part of your “network” is the set the groups to which you belong. In college, student groups are getting more diverse, more creative, and more ambitious, in many cases actually reshaping the curricular programming and general landscape of their universities. After college, a new world of conferences (e.g. Summit Series and TED), networking communities (e.g. Sandbox and New Leaders Council), meetup groups (e.g. Wok+Wine and Good Brain Dinners), and fellowship communities (e.g. PopTech Social Innovation Fellows and Rainer Arnhold Fellows) provide a never-ending stream of new relationships.

Importantly, people are forming relationships not just with individual members of these groups, but with the group as an entity. The group becomes a proxy of trust and professional relationship and people begin to invest in other members even when they don’t have a deep personal relationship with them. Value is exchanged not through transactions but in a sort of Karmic system. In other words, people share resources with a member of the group not expecting to get back the same value from that person individually, but expecting that the reputation and trust they build by being a recognized contributing member of the community will result in them being able to tap other members of the group for resources when they need it.

This is an important distinction, and one of the reasons that crowdsourcing thinking can fall short when applied to persistent groups. The motivation for strangers to help when one is crowdsourcing a problem can often be financial, and organized around a marketplace. But social capital does not work the same way as financial capital, and in persistent groups, social capital “transactions” are multiparty and extended over time.

These things matter because the opportunities for individuals to invest in relationships with their groups is changing their need to rely on traditional institutional loci of power and money. You don’t need to form a giant company to start a world class conference (see: Summit Series). You don’t need a record label or a government grant to finance the creation of your music or art (see: Kickstarter). You don’t need a “career” anchored by formal companies to make money and work on meaningful projects (see: about half of San Francisco residents born between 1976-1986).

All of these shifts are enabled by the tools and norms that are changing how we build, maintain, and leverage relationships with groups. And the shift is only just beginning. All the evidence suggests we’re entering a period of punctuated equilibrium in which the tools we create will not only react to but actual interact with and shape the change in group structures.

To fund a Kickstarter project today may be an act of creative patronage, but by tomorrow it could be that funders collectives are actually powerful, organized forces. To buy a Groupon today may just be a fun way to get a discount to discover your city, but by tomorrow it could be the starter experience to join a club of peers who want common adventures. Indeed, some of the smartest companies in the world like Zappos are actively thinking about how to use the purchasing experience as the catalyst for an interact, community experience.

There is a world opportunities for startups to address the needs of highly dynamic, increasingly powerful informal associations. Traditional social networks are by definition designed around individual-to-individual relationships, making them fall short of the needs of these types of groups. Group email and custom social networks have their problems, as well.

To take advantage of these opportunities, however, we’re going to have to expand our thinking — and our lexicon. Crowdsourcing will continue to evolve and be a powerful economic and social force, but it is only the tip of the iceberg. What lies just beneath the surface are untold opportunities to use the internet to amplify human assembly, and the impact of those opportunities — from careers to politics to creation — will shape the next generation of organization and society.

Photo: Woknwine.com

  • Rafstevens

    Fantastic insight!

  • Rafstevens

    I relate wit this: “people are forming relationships not just with individual members of these groups, but with the group as an entity. The group becomes a proxy of trust and professional relationship and people begin to invest in other members even when they don’t have a deep personal relationship with them.”

    I called it http://www.linkedstories.com

    It is all

  • Lew

    As the technology world evolves to virtualization and the cloud, crowdsourcing is the human equivalent. This approach will be used for every thing from job search to basic problem solving.
    Lew Sauder, Author, Consulting 101: 101 Tips For Success in Consulting (www.Consulting101Book.com)

  • http://blog.assetmap.com Nathaniel Whittemore

    I really think the “group becomes a proxy of trust and relationship” is the most essential part of this – thanks for pulling it out!

  • http://spiralout.posterous.com/ GregoryJRader

    It will be interesting to see how these groups develop as we are now increasingly enabled to publicize diverse aspects of our personalities and interests, while at the same time we can now connect with others over more and more specific niche interests. I think this is important with regard to the persistence of a given groups membership. Will the most successful groups maintain persistent membership and evolve as their members grow and evolve or will groups cater to specific goals or phases of life that members will move through and graduate from?

  • http://twitter.com/socialentrprnr/status/27053273542295552 Nathaniel Whittemore

    New post about how increasingly powerful informal groups are changing everything from artistic creation to careers http://bit.ly/gYpM4K

  • http://twitter.com/newsbloom4/status/27054867176493056 News Bloom

    Why Crowdsourcing Should Be Called Group Powering (And Why Its So Powerful) – http://bit.ly/dW25XR – [Hacker News FH]

  • http://twitter.com/newsbloom4/status/27054867176493056 News Bloom

    Why Crowdsourcing Should Be Called Group Powering (And Why Its So Powerful) – http://bit.ly/dW25XR – [Hacker News FH]

  • http://twitter.com/thethirdteacher/status/27056146934140929 The Third Teacher

    RT @socialentrprnr: how increasingly powerful informal groups are changing everything from artistic creation to careers http://bit.ly/gYpM4K

  • http://twitter.com/virgiliasingh/status/27060144701444096 Virgilia Singh

    Increasingly powerful informal groups are changing everything from artistic creation to careers http://bit.ly/gYpM4K

  • hugo

    @nlw "Group Powering": future of social capital, groups as proxy for "trust and profesional relationship" http://goo.gl/9tZha

  • http://twitter.com/chrissandbox/status/27062934546944000 Christian Busch

    "Group Powering": groups as proxy for "trust and professional relationships" http://goo.gl/9tZha

  • http://twitter.com/clayforsberg/status/27064192548741121 Clay Forsberg

    The real power lies in "Group Powering" … not crowdsourcing: http://bit.ly/gYpM4K new post from @nlw

  • http://twitter.com/variable_edge/status/27066423230595073 the bleedingEDGE

    The real power lies in "Group Powering" … not crowdsourcing: http://bit.ly/gYpM4K new post from @nlw

  • http://twitter.com/bonifer/status/27067737406705664 Bonifer

    RT @clayforsberg: The real power lies in "Group Powering" … not crowdsourcing: http://bit.ly/gYpM4K new post from @nlw

  • http://twitter.com/isss111/status/27067996451115008 Inês Silva

    RT @ChrisSandbox: "Group Powering": groups as proxy for "trust and professional relationships" http://goo.gl/9tZha

  • http://twitter.com/cognitivepolicy/status/27071614461939712 Joe Brewer

    Unleashing the power of crowds where trust is the currency… this is EXACTLY what we're doing with our strategy… http://fb.me/FwXGdG1I

  • http://twitter.com/assetmap/status/27076002114965507 Assetmap

    New post about how increasingly powerful informal groups are changing everything from artistic creation to careers http://bit.ly/gYpM4K

  • http://twitter.com/lesamitchell/status/27077566271590400 lesamitchell

    RT @assetmap: Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking http://bit.ly/gYpM4K

  • http://twitter.com/rafstevens/status/27079118176657408 rafstevens

    RT @assetmap: Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking http://bit.ly/gYpM4K

  • http://twitter.com/helloholistic/status/27080553555562497 helloholistic

    What can we do utilizing the power of group around holistic lifestyle values? Can we create a more sustainable… http://fb.me/Q8N86tZd

  • http://twitter.com/lauratomasko/status/27085130816294912 Laura Tomasko

    On powerful informal groups RT @assetmap Why Crowdsourcing Should Really Be Called Group Powering http://bit.ly/gYpM4K

  • Nathanketsdever

    Agreed. I think crowdsourcing that goes offline (or at least face to face via skype or other video conf. application) also needs a unique lexicon or nomenclature, because the social capital & human interaction is potentially different.

    Well done.

  • http://twitter.com/socialentrprnr/status/27131775012577280 Nathaniel Whittemore

    Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/adamarisilver/status/27132984251383808 Adam Silver

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/smallchangefund/status/27134367042113537 Small Change Fund

    Proud to be along for the ever-evolving ride RT @socialentrprnr Why Crowdsourcing Should Be Called Group Powering http://bit.ly/gYpM4K

  • http://blog.assetmap.com Nathaniel Whittemore

    Yeah – the barrier between online and offline is getting blurrier, both in terms of the fluidity of connection tools and in how online relationships go offline and vice versa!

  • http://blog.assetmap.com Nathaniel Whittemore

    A great question which is particularly relevant for groups aimed at a young demographic? Do we become “too old” for the institutions we’re starting for ourselves? I think sometimes the answer is yes.

  • http://twitter.com/filamthropy/status/27148943183847424 Tweets by J Paras

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/favabank/status/27152988678131712 John Durrant

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/paconmiller/status/27153727475425280 paconmiller

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/steveouttrim/status/27181869158105088 steveouttrim

    @samotage good article "crowdsourcing should be called group powering" http://bit.ly/eUjwGc

  • http://twitter.com/lluiscompte/status/27213196083335168 Lluís Compte Puerto

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/socialentrprnr/status/27217736237064192 Nathaniel Whittemore

    From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/socialentrprnr/status/27217736237064192 Nathaniel Whittemore

    From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/gregjanes/status/27218578889506816 Greg Janes

    RT @socialentrprnr: From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/launch/status/27219321851740160 Launch Conference

    How "group powering" is remaking everything. AKA why conferences & networking are vital. http://bit.ly/fXZxyl

  • http://twitter.com/bcroke/status/27219836736118784 Brandon Croke

    *like RT @socialentrprnr: From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/hapycookie/status/27227724623908864 Tanzi

    RT @socialentrprnr: From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/assetmap/status/27242193815085056 Assetmap

    From artistic creation to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/nlw/status/27259176237404160 Nathaniel Whittemore

    rt @launch How "group powering" is remaking everything. AKA y conferences…r vital. http://bit.ly/fXZxyl (a RT by 2011's next big event)

  • http://twitter.com/nouwahby/status/27259542018465792 Noura Wahby

    RT @socialentrprnr: From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/jackiemjensen/status/27277770576891904 Jacqueline

    RT @Launch: How "group powering" is remaking everything. AKA why conferences & networking are vital. http://bit.ly/fXZxyl

  • http://twitter.com/chokha/status/27280521281146880 chokha

    Why Crowdsourcing Should Really Be Called Group Powering (and How … http://bit.ly/ew9Dfm

  • http://twitter.com/umwiza/status/27342480873623552 umwiza

    RT @socialentrprnr: From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/dave_blanchard/status/27346923300061184 Dave Blanchard

    RT @socialentrprnr: From creative expression to careers, how powerful informal groups are changing everything http://bit.ly/gYpM4K

  • http://twitter.com/taralconnolly/status/27388542736924673 Tara Connolly

    MUST READ for #socents RT @socialentrprnr From creative expression to careers, how informal groups change everything http://bit.ly/gYpM4K

  • http://twitter.com/nicolebengny/status/27397657882263552 Nicole Cohen-Nelson

    RT @assetmap: Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking http://bit.ly/gYpM4K

  • http://twitter.com/arabellasangst/status/27398630700752896 Arabella

    READ HOW SOCIAL MEDIA IS CHANGING NETWORKING GROUPS ~ http://bit.ly/hoIZut

  • http://twitter.com/encorecrm/status/27398845914685440 Encore CRM Marketing

    RT @ArabellasAngst: READ HOW SOCIAL MEDIA IS CHANGING NETWORKING GROUPS ~ http://bit.ly/hoIZut

  • http://twitter.com/nonprofitunity/status/27399011300286464 Social Nonprofits

    RT @ArabellasAngst: READ HOW SOCIAL MEDIA IS CHANGING NETWORKING GROUPS ~ http://bit.ly/hoIZut

  • http://twitter.com/griffwyng/status/27418029109280768 griffwyng

    RT @assetmap: Why Crowdsourcing Should Really Be Called Group Powering. http://bit.ly/gYpM4K #socialdesign

  • http://twitter.com/commondeeds/status/27446387645878272 CommonDeeds

    RT @assetmap: Why #Crowdsourcing Should Really Be Called Group Powering http://bit.ly/gYpM4K #collaboration

  • http://twitter.com/thinkark/status/27481746165469184 thinkARK

    RT @griffwyng: RT @assetmap: Why Crowdsourcing Should Really Be Called Group Powering. http://bit.ly/gYpM4K #socialdesign

  • http://twitter.com/amjanette/status/27486300982480896 amanda thompson

    What's crowdsourcing? What's group powering? why is it important? tells you here @assetmap http://bit.ly/gYpM4K

  • http://twitter.com/jolwen/status/27490218483384321 olwen moseley

    RT @amjanette: What's crowdsourcing? What's group powering? why is it important? tells you here @assetmap http://bit.ly/gYpM4K

  • http://twitter.com/wirelessjoe/status/27496099988111360 Joe Alicata

    RT @assetmap: Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking Everything) http://bit.ly/gYpM4K

  • http://twitter.com/kevinberkane/status/27661713486651392 Kevin

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/videaux/status/27731974588207104 videaux

    RT @socialentrprnr: Why Crowdsourcing Should Really Be Called Group Powering (and Why Its Changing Everything) http://bit.ly/gYpM4K

  • http://twitter.com/altern8media/status/27770499538886656 Altern8media

    RT @amjanette: What's crowdsourcing? What's group powering? why is it important? tells you here @assetmap http://bit.ly/gYpM4K

  • http://twitter.com/trnsltntech/status/27818944815435776 Translation Tech

    RT @kvashee: Why #Crowdsourcing Should Really Be Called Group Powering http://t.co/9sPAUUF

  • http://twitter.com/socialbttrfly/status/27824816287383552 Alexandra Bornkessel

    Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking Everything): http://bit.ly/eUfcqN.

  • http://twitter.com/claudesjems/status/28097752634228736 claudesjems

    RT @ArabellasAngst: READ HOW SOCIAL MEDIA IS CHANGING NETWORKING GROUPS ~ http://bit.ly/hoIZut

  • http://twitter.com/assetmap/status/28165166482849792 Assetmap

    Why Crowdsourcing Should Really Be Called Group Powering (and How Group Powering is Remaking Everything) http://t.co/waGvxO4 via @assetmap

  • http://twitter.com/oolanilsson ola nilsson

    Wow Nathaniel, you really hit the nail on the head with this one I think! I really think your connections are truly beautiful and I love (and totally agree with) the notion of “Karmic” motivation in Group Powering.

    I’ve been working in non-profits for almost a decade, and with a strong interest in social media for about as long, and it’s only recently that I have started to see some really cool initiatives that base themselves in this mindset.

    Adressing GregoryJRader’s points as well, I think that groups that want to source the full potential in Group Powering need to be aware of the dynamics, be ready to let go of control a bit and open up for transparency and trust to guide the process. When they do, it could really blow their minds!

    I also think there is a point in understanding the dynamics of Group Powering – it can also be utilized as a strategy or tool in specific contexts – but if this is the case, you need to be very clear with how you communicate that to the group members and that they are on the same page, otherwise nobody will come running to help once you shout, because you won’t be top of mind, you’ll be lost in the everyday noise. This partly adresses the “membership endurance” point. The other aspect of group membership, longevity, endurance, etc, is that I think it’s really important to think about the loyalty aspect and the feedback-loop in the group. If we believe in the Karmic feedback, then the more you give the more you get back. I think that a Karmic feedback-loop can be fostered in ways that can both give instant gratification (new joiners can feel immediate satisfaction, eg if you contribute to a successfull Kickstarter you get the rewards) – which will welcome new joiners – and also foster a longer term loyalty – the trust and respect you gain from your input builds your social capital and you continue to give.

    I think this is really cool stuff and feeds very well into organizational and group theory. Well done Nathaniel, and Thank You!!
    /ola

    ps. find some info on a recent example from Sweden of Group Powering for equality and representation in media, culture and business – http://www.rattviseformedlingen.se/english – it’s simple and pretty powerful.

  • http://twitter.com/Crowdsourcing_ Crowdsourcing.org

    Great insights! Whether it’s called crowdsourcing or group powering, the impact is great and will even be greater in the coming years ahead.

    If you do want to jump on this bandwagon, you can visit our site at crowdsourcing.org. Or you could read this interesting article, http://www.crowdsourcing.org/l/447!

  • Gunasekar C Rajaratnam

    I never liked the term” crowd sourcing” . It sounds manipulative and exploitative.

  • http://www.facebook.com/toni.mckinley Toni McKinley

    So true!!

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